New Collar Jobs Act of 2025
- Bill Number
- H.R. 2447
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2025-03-27: Referred to the Committee on Science, Space, and Technology, and in addition to the Committees on Ways and Means, Education and Workforce, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-04-08T16:29:45Z
AI-Generated Summary
Purpose
The New Collar Jobs Act of 2025 aims to boost cybersecurity education and job opportunities, particularly in manufacturing and other sectors facing cyber threats. It addresses the growing need for skilled workers by providing financial incentives for training, education, and employment in cybersecurity roles, while recognizing the mismatch between rising industrial output and stagnant job growth.
Key Provisions
- Findings (Section 2): Highlights that U.S. manufacturing output has grown significantly since 2009, but employment has not kept pace, with increasing demand for cybersecurity expertise due to a 250% rise in cyber incidents in industrial systems between 2011 and 2015.
- Employee Cybersecurity Education Tax Credit (Section 3): Employers can claim a tax credit equal to 50% of qualified expenses for employees earning cybersecurity certificates, degrees, or industry-recognized certifications aligned with the NICE Cybersecurity Workforce Framework (NCWF). The credit is capped at $5,000 per employee per year and applies to programs starting after enactment.
- Student Loan Repayment for Cybersecurity Workers (Section 4): Borrowers with eligible federal student loans can have up to $25,000 forgiven after making 36 consecutive monthly payments while working full- or part-time (at least 60% of hours) in a cybersecurity job in an economically distressed area (defined as regions meeting criteria for economic hardship under federal law). Cybersecurity jobs include roles or teaching positions outlined in the NCWF. Double benefits with other loan forgiveness programs are prohibited.
- CyberCorps Scholarship-for-Service Program Expansion (Section 5): Expresses Congress's intent to double the number of National Science Foundation scholarships for fiscal year 2026 and beyond compared to 2024. Expands eligibility to include cybersecurity course instructors and allows post-graduation work in teaching roles. Removes priority for federal government job placements, broadening opportunities to private sector roles.
- Increased Funding for Advanced Technology Education (Section 6): Urges the National Science Foundation to increase funding for its Information Technology and Cybersecurity Division by at least 110% for fiscal year 2026 compared to 2024, supporting community college and technical training programs.
- Cybersecurity Training Incentive for Government Contracts (Section 7): Federal executive agencies must give a 5% evaluation score boost to bids for contracts over $5 million from companies that have claimed the new tax credit at least once in the prior three years.
Significant Changes to Existing Law
- Internal Revenue Code Amendments: Introduces a new Section 45BB for the employee cybersecurity education credit, integrating it into the general business credit system and preventing double-dipping with other tax benefits.
- Higher Education Act Amendments: Adds a new subsection to Section 455 for targeted loan forgiveness for cybersecurity workers in distressed areas, distinct from existing programs like public service loan forgiveness.
- Cybersecurity Enhancement Act Amendments: Expands the Federal Cyber Scholarship-for-Service program to include instructors and teaching as qualifying post-scholarship work, while eliminating the preference for federal employment placements.
- Sense of Congress Directives: Non-binding recommendations to increase funding for NSF programs, which could influence future appropriations but do not mandate changes.
Potential Impacts
- On Government Agencies: Increases procurement preferences for cybersecurity-trained contractors, potentially improving federal contract security but raising evaluation costs. NSF and the Department of Education may see higher workloads for scholarship and loan programs.
- On Citizens: Encourages more individuals to pursue cybersecurity careers through tax incentives, scholarships, and debt relief, especially in economically challenged areas, leading to better job prospects and reduced student debt. Manufacturers and other employers may invest more in workforce training, fostering job growth.
- On International Relations: Minimal direct impact, though a stronger domestic cybersecurity workforce could enhance U.S. resilience against global cyber threats from foreign actors.
Main Stakeholders Affected
- Employers: Particularly manufacturers and businesses bidding on federal contracts, who benefit from tax credits and procurement advantages but face incentives to upskill employees.
- Employees and Students: Cybersecurity workers and trainees, gaining access to education funding, loan forgiveness, and job opportunities, especially in underserved regions.
- Educational Institutions: Community colleges, universities, and training providers, potentially receiving more NSF funding and student enrollments for cybersecurity programs.
- Government Entities: National Science Foundation (scholarships and education funding), Department of Education (loan administration), executive agencies (contract evaluations), and the National Institute of Standards and Technology (framework guidance).
Notable Legal, Constitutional, or Political Implications
- Legal: The tax credit and loan forgiveness provisions create enforceable incentives tied to specific frameworks like the NCWF, ensuring alignment with national cybersecurity standards. No double benefits rule prevents abuse of federal programs.
- Constitutional: Aligns with Congress's powers to tax, spend, and promote education and economic welfare under Article I; no apparent conflicts with free speech, equal protection, or other rights.
- Political: As a bipartisan effort (introduced by Rep. Lieu with co-sponsors), it promotes workforce development without mandating spending, relying on "sense of Congress" for funding to build support across committees. Could face debate over tax expenditures (estimated costs to Treasury) versus long-term economic benefits in reducing cyber vulnerabilities.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Tokuda, Jill N. [D-HI-2], Rep. Torres, Norma J. [D-CA-35]
Recent Actions
- 2025-03-27: Referred to the Committee on Science, Space, and Technology, and in addition to the Committees on Ways and Means, Education and Workforce, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-27: Referred to the Committee on Science, Space, and Technology, and in addition to the Committees on Ways and Means, Education and Workforce, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-27: Referred to the Committee on Science, Space, and Technology, and in addition to the Committees on Ways and Means, Education and Workforce, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-27: Referred to the Committee on Science, Space, and Technology, and in addition to the Committees on Ways and Means, Education and Workforce, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-27: Introduced in House
- 2025-03-27: Introduced in House
Bill Versions
- New Collar Jobs Act of 2025 — issued 2025-03-27 — PDF (10 pages)